Re: puppet Luke disappearing… I mean that’s literally what happens in TLJ. If you’ve seen TLJ, you know that’s the capper to the whole thing - Luke comes out, stands them down, then disappears. I don’t see why laughing at him disappearing would seem like a diss at Luke at all, that doesn’t even make sense.
I still don’t think it needs to be a 1:1 recreation of what happened in TLJ even disregarding people thinking the child’s laughing at Luke’s death. Seeing that the only ones who witnessed the face-off was the First Order and Luke himself (the Resistance having retreated into the caves to escape after he shows up), I don’t think the Galaxy at large would know what exactly happened. All they would know is that Luke faced off against the might of the First Order and won somehow.
Anyways, I guess this is my long winded way of saying that I’m absolutely for the “Luke batting away the laser shot” aspect of the puppet show rather than him just disappearing.